 you can make this election only for amounts that would otherwise be included in your income. The amount excluded from your income can't be used to claim medical expenses deductions, meaning you can't, if it wasn't going to be included in income then you already have the benefit, right? If it was going to be included in income then possibly if this applies you might get the benefit there of removing it. So an eligible retirement plan is a government plan that is qualified trust or a section 403A, 403B, 457A plan, caution. So you can exclude from income only the smaller of the amount of the premiums paid or $3,000. This is true if the distribution was made directly from the plan to the provider of the accident or health plan or long-term care insurance contract or if the distribution was made to you and you paid the provider of the accident or health plan or long-term contract. Simplified method, you must use the simplified method if either of the following applies. Number one, your annuity starting date was after July 1st 1986 and you used this method last year to figure the taxable part. So you have some consistency in the method that's going to be used which is a general rule for basically accounting and taxation. So two, your annuity starting date was after November 18th 1996 and both of the following apply. One or A, the payments are from a qualified employee plan, a qualified employee annuity or a tax sheltered annuity. B, on your annuity starting date either you were under age 75 or the number of years of guaranteed payments was fewer than five. C, publication 575 for the definition of guaranteed payments. So if you must use the simplified method complete the simplified method worksheet in these instructions to figure the taxable part of your pension or annuity for more details on the simplified method. You can see publication 575 which of course you can find on the IRS website. Here's a quick look at it. We won't go into it in detail here. Rollovers. So remember that rollovers is going to be a situation you want to make sure to identify and inform people of if they're going from one job to another and they have a retirement plan with one of those jobs and they don't want to pull the money out but roll it over. Generally a rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan with 60 days of receiving the distribution. However a rollover to a Roth IRA or a designated Roth account is generally not a tax-free distribution. So you can imagine the general idea here would be well if you have money that's in investment accounts such as mutual funds but they're under the umbrella of some type of retirement account meaning you can't take it out because you got tax benefits on it then you can't just take the money it's going to be difficult to roll that money into something else. In other words you want to make sure you don't take the money out be subject to penalties and interest receiving a 1099R that has a distribution code that's going to be subject to penalties and interest. What you would like to do is possibly go from one institution to the new institution possibly with a new place of employment and say hey I had an old 401k plan here I would like you to roll it over so that it's still under the umbrella of a retirement type of plan the same type meaning you can't typically go from a normal retirement plan to a Roth with a rollover because those two things are taxed differently. But if I go from one normal kind of retirement plan to another type of retirement plan that has the same type of restrictions you would think that would be a fair thing to do or something that the government would want to allow you basically to do so that's the general idea. Now note that a normal retirement plan is one where you get the benefit when you put the money in and then when you take the money out you're going to be taxed on it typically at retirement. A Roth is reversed meaning you get taxed on it when you put the money in it grows and then and then you get the tax benefit when you when you when you take the money out. So it's kind of the opposite so converting from a Roth to a normal or a normal to a Roth is more complicated than simply rolling over from a normal retirement account to a normal retirement account you would think. So use lines 5a and 5b to report a rollover including a direct rollover from one qualified employer plan to another's or to an IRA or SEP. So note that the IRA so if you go from a place of employment where you have a 401k plan for example and then you become self-employed or you just stop working or you work for someone that doesn't have a 401k plan.